Clarky Posted January 6, 2014 Posted January 6, 2014 (edited) If I were to buy a reasonably high value item from the US (around a couple of grand), is the import duty/VAT payable on the declared value of the item only or on the value of the item [u]plus [/u]shipping cost (the item is quite bulky and has a c$500 shipping cost)? IIRC the net cost is about 21-22%, based on VAT plus handling charge but please correct me if I'm wrong Thanks in advance Edited January 6, 2014 by Clarky Quote
RhysP Posted January 6, 2014 Posted January 6, 2014 (edited) The duty & vat are based on the combined value of item & shipping. Allowing for varying courier charges this end I always work on about 23-24%, but it depends on what the actual item is classed as by HM Customs & Revenue, duty could be a lot less or a lot more. Edited January 6, 2014 by RhysP Quote
Clarky Posted January 6, 2014 Author Posted January 6, 2014 Thanks Rhys, I had a feeling that is the case. And it does compute to c.22%, is that correct (only slightly more than VAT as the handling charge is relatively small as a percentage for a higher value item)? Cheers Quote
Ruiner Posted January 6, 2014 Posted January 6, 2014 I've found this site to be pretty useful for calculating this sort of thing. [url="http://www.dutycalculator.com/new-import-duty-and-tax-calculation/"]http://www.dutycalculator.com/new-import-duty-and-tax-calculation/[/url] Quote
Clarky Posted January 6, 2014 Author Posted January 6, 2014 Many thanks! I now have all the info I need. Cheers Rhys and Ruiner Quote
MilkyBarKid Posted January 7, 2014 Posted January 7, 2014 each item will have a commodity code.Duty varies for various commodity codes .I think it goes up to about 15%, but for musical instruments / electronics it's probably around 2-5%. Duty is charged on what Customs decide is the value of the item, not on what you paid for it. VAT is then calculated on the total of item value + shipping charges + duty. Handling costs are usually about £15 if coming via USPS / Parcel force; this is added to the piece after vat. Quote
Si600 Posted January 7, 2014 Posted January 7, 2014 Does this mean that the new P-Bass 5er on eBay from the US for £700 + about another £70 shipping is going to end up costing more than it would if I bought it over here? I did think it was too nice to happen! Quote
Happy Jack Posted January 7, 2014 Posted January 7, 2014 You're not really going to buy a DB from the States are you? Quote
Clarky Posted January 7, 2014 Author Posted January 7, 2014 [quote name='Happy Jack' timestamp='1389084365' post='2329605'] You're not really going to buy a DB from the States are you? [/quote]Erm possibly. A very specific instrument on which there is a new year's deal Quote
Happy Jack Posted January 7, 2014 Posted January 7, 2014 (edited) [quote name='Clarky' timestamp='1389084481' post='2329608'] A very specific instrument ... [/quote] Oh well, so long as you're not just buying one at random then ... ps: Really sorry about Theo BTW. Edited January 7, 2014 by Happy Jack Quote
hubrad Posted January 7, 2014 Posted January 7, 2014 I'm not 100% sure, but I think VAT gets applied to the carriage charge, too.. if you're buying a DB I'd imagine P+P to be on the high side. Quote
DaytonaRik Posted January 7, 2014 Posted January 7, 2014 (edited) Guitars are currently charged a duty of %3.7, plus VAT and don't forget to add VAT onto the carriage too...although quite how this can be justified is beyond me!!! Edited January 7, 2014 by DaytonaRik Quote
muttley Posted January 7, 2014 Posted January 7, 2014 [quote name='DaytonaRik' timestamp='1389097531' post='2329799'] Guitars are currently charged a duty of %3.7, plus VAT and don't forget to add VAT onto the carriage too...although quite how this can be justified is beyond me!!! [/quote] Duty and VAT are applied to the [u]total value of the import[/u]. This means the total of the cost of the good(s), transit, insurance (and any other fees that I haven't thought of). Also, as MilkyBarKid pointed out, Customs will charge based on their own valuation if they think the documentation is suspect (or absent). They know how much stuff costs, it's their job. It's worth remembering that when you buy a product in the UK/EU these costs are all included in the price. Buyers often think that they are getting a bargain buying outside the EU because there are no sales taxes etc to pay. Wrong! You pay them when the item clears customs making your purchase much less of a bargain than you originally thought... Of course, if the item can't be procured in the EU then you have no choice, but make sure you are prepared for what it will actually cost (use the website in post #4). Quote
ambient Posted January 7, 2014 Posted January 7, 2014 (edited) Also include bank or paypal charges for currency transfers, you'll get a shock otherwise when you come to pay for it. You'll get your bill for the bass plus shipping and think that's cool, then end up paying a lot more to make the payment. I just found this out last week. Banks and Paypal don't use the exchange rate that you see advertised, they use their own which is biased well and truly in their favour, and they charge you a handling fee. Edited January 7, 2014 by ambient Quote
keeponehandloose Posted January 7, 2014 Posted January 7, 2014 be careful of insurance as well! Last year I looked into a DB from New York and when I added insurance to the shipping that was the total apllicable to Vat. IE BASS= £2000 Insure shippment for £2000 Amount which would be chargeable to VAT =£4000(plus all the shipping / duty as stated above) Quote
Lozz196 Posted January 7, 2014 Posted January 7, 2014 [quote name='Si600' timestamp='1389084016' post='2329598'] Does this mean that the new P-Bass 5er on eBay from the US for £700 + about another £70 shipping is going to end up costing more than it would if I bought it over here? I did think it was too nice to happen! [/quote] No, if it works out at 22% on top of the £770 the total is approx £940. The courier may add a bit on as well - handling/highwayman charges - but that`s still a good deal off of our prices. I bought a 2013 Precision new last year from the US and all in was just about £900 - as oppose to the £1300 over here. Quote
franzbassist Posted January 9, 2014 Posted January 9, 2014 (edited) The Tony Franklin I have arriving tomorrow totalled 19.5% of the bass+shipping's declared value. Edited January 9, 2014 by walbassist Quote
BetaFunk Posted January 9, 2014 Posted January 9, 2014 [quote name='Clarky' timestamp='1389084481' post='2329608'] Erm possibly. A very specific instrument on which there is a new year's deal [/quote] Kolstein's haven't got a sale on have they? Quote
Clarky Posted January 9, 2014 Author Posted January 9, 2014 [quote name='BetaFunk' timestamp='1389302553' post='2332710'] Kolstein's haven't got a sale on have they? [/quote] shhhhhhhh Quote
BetaFunk Posted January 9, 2014 Posted January 9, 2014 [quote name='Clarky' timestamp='1389302763' post='2332714'] shhhhhhhh [/quote] My lips are sealed. Quote
Clarky Posted January 9, 2014 Author Posted January 9, 2014 Bloody BC detectives. Next you'll be telling me I'm sat at my computer wearing a lacy basque and high heel combo, errr Quote
BetaFunk Posted January 9, 2014 Posted January 9, 2014 [quote name='Clarky' timestamp='1389303076' post='2332723'] Bloody BC detectives. Next you'll be telling me I'm sat at my computer wearing a lacy basque and high heel combo, errr [/quote] Whatever you do don't get your bow caught in your suspenders. Arco and nylons don't mix. We all know that don't we?........ Maybe it's just me then. Quote
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